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flag U.S. bans on chip software sales to China cause Synopsys and Cadence stocks to plummet.

flag On May 28, 2025, U.S. chip design software companies Synopsys and Cadence Design Systems saw their stocks drop significantly after President Trump ordered a halt on selling crucial software to China. flag This move aims to curb China's progress in developing advanced chips, impacting the semiconductor industry and potentially reducing U.S. companies' revenue from Chinese markets. flag Synopsys stock fell 9.64% to $462.43, while Cadence's dropped 10.67% to $288.61. flag Cadence's shares had already been trading at a high multiple, making them vulnerable to geopolitical events. flag The company's China revenue in 2024 was $573 million, or over 12% of overall revenue.

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